Home Foreclosures Jump In 3rd Quarter: Regulators

WASHINGTON (By Dave Clarke) - U.S. home foreclosures jumped in the third quarter and banks' efforts to keep borrowers in their homes dropped as the housing market continues to struggle, U.S. bank regulators said on Wednesday.

The regulators said one reason for the increase in foreclosures is that banks have "exhausted" options for keeping many delinquent borrowers in their homes through programs such as loan modifications.

Newly initiated foreclosures increased to 382,000 in the third quarter, a 31.2 percent jump over the previous quarter and a 3.7 percent rise from a year ago, the Office of the Comptroller of the Currency and the Office of Thrift Supervision said in their quarterly mortgage report.

The number of foreclosures in process increased to 1.2 million, a 4.5 percent increase from the second quarter and a 10.1 percent increase from a year ago, according to the regulators.

The report, which covers 33 million loans serviced by national banks and federally regulated thrifts, also shows a sharp drop in the amount of loan modifications processed through the Home Affordable Modification Program (HAMP), the Obama administration's leading foreclosure prevention effort. HAMP loan modifications fell by almost 46 percent in the third quarter, according to the report.

Regulators noted, however, that loan modifications done by servicers outside of HAMP increased by 10 percent in the third quarter.

Overall home retention actions taken by banks to keep borrowers in their homes dropped by 17 percent compared to the second quarter.

(Reporting by Dave Clarke, Editing by Chizu Nomiyama)

Copyright 2010 Thomson Reuters. Click for Restrictions.

Comments

[AZreb]

10:10 AM on 01/02/2011

2.8 million more foreclosures projected for 2011.

[Siebenstein]

02:49 AM on 12/31/2010

http://motherjones.com/politics/2010/03/obama-jp-morgan-jamie-dimon

[realitytrumpsbull]

10:20 PM on 12/30/2010

What's funny is to read the ads on this page advertising mortgages. But, if they think I'm ever signing mortgage papers, after all the B.S. that's gone on the last couple years, they're STONED. Or, should be.

[cats530]

03:10 PM on 12/30/2010

Here's more on the "exhausted options". Enjoy!

http://mandelman.ml-implode.com/2010/12/foreclosures-increase-11-2-in-third-quarter-over-second-quarter-of-2010-and-that-means/

[LINY01]

11:24 AM on 12/30/2010

A Banker's Philosophy (first published in 1941,):

“Let us make use of the courts. Let us go forward as fast as possible at perceiving debts, at foreclosing (depriving of recourse to justice when a certain time limit has been transgressed) on debentures and mortgages.

“When, through the law's intervention, the common people shall have lost their homes, they will be more easy to control and more easy to govern, and they shall not be able to resist the strong hand of the Government acting in accordance with the orders of the central power of imperial wealth, under the control of the leaders of finance.

“By dividing the electorate this way, we'll be able to have them spend their energies at struggling amongst themselves on questions that, for us, have no importance whatsoever, and on which we only touch upon as instructors of the common flock.

“It is thus that, through discreet acts, we can maintain what was so generously projected and executed with such a remarkable success.”

http://michaeljournal.org/bankphilo.htm

[cats530]

12:16 PM on 12/30/2010

Chilling and exactly what is happening now, although securitization/MERS kind of threw a monkeywrench in their diabolical plot.

[jcaunter]

08:50 AM on 12/30/2010

In other news, dog bites man.

[spoonerrothbard]

05:49 AM on 12/30/2010

Perhaps one should ask his or her bank to show him or her the original note.
There is so much fraud (by the bank) in the process mortgage "lending" it is baffling.

[bisbeeornotbisbee]

08:50 AM on 12/30/2010

Such a good post!  Faved and fanned long ago.

[sandiegoconservative]

02:19 AM on 12/30/2010

My neighbor two doors down lived a lifestyle that included many toys and fancy electronics, and apparently, no savings. When they started the foreclosure process about two years ago, they whined and complained and eventually had their loan modified. And they went right out and bought more toys. Now they are struggling again, and the bank apparently has had enough. And all the neighborhood hears now is more complaining about how it is not "fair".

At least now I can purchase a good home for a rental.

[jcaunter]

08:53 AM on 12/30/2010

Go ahead a purchase the home. Too bad for you that home note/mortgage was more than likely entered into the MERS system. Have fun dealing with all the lawyers and document servers will soon be knocking on the door of "your" new home.

[cats530]

12:19 PM on 12/30/2010

I see you "get it". So many don't. Good luck with the toxic titles for those who don't. And when they argue they will get the title insurer to pay off - good luck with that - most don't have sufficient reserves. Toxic title on "new purchases" will be the next crisis (in a few years give or take).

[sandiegoconservative]

01:45 AM on 12/31/2010

I purchased a home about a year ago and the MERS system was no issue then. The last document server who tried to harass me found him at the receiving end of a lawsuit from my firm. I paid for my concrete walk way with the proceeds.

[myravensong]

12:46 AM on 12/30/2010

- The regulators said one reason for the increase in foreclosures is that banks have "exhausted" options for keeping many delinquent borrowers in their homes through programs such as loan modifications- I call bull sh*t they have done next to nothing to help. Just a couple of months ago the government was complaining the banks were not even using the Hamp program and were calling them out for it . Now they have "exhausted" options for helping the people they have defrauded ....give me a break ! Have you tried to get a Hamp loan mod ? What a nightmarish joke .... Makes ya want to punch someone in the pie hole.

[David Sincere]

10:44 PM on 12/29/2010

Mrs. Warren, the fraud started with the Clinton and Bush Administrations trying to use easy credit, (subprime mortgage lending) unregulated investment banks and brokers to simulate the US economy. You articulated this fraud in your book The Two Income Trap. We need the government to get a handle on the broken mortgage system. The other problem is that easy credit is no longer available. The credit and lending standards are higher. It is difficult for consumers to spend money they don’t have. After years of Americans having a negative savings rate; there is no way to get GDP where it was during the great boom of the early 2000’s. The average American just doesn’t have the money. They are broke.

[BonnieDoon]

04:59 PM on 12/29/2010

HAMP did not work.

It was not mandatory - it was advised (ie., voluntary). The banks make more money foreclosing than doing modifications.

"The regulators said one reason for the increase in foreclosures is that banks have "exhausted" options for keeping many delinquent borrowers in their homes through programs such as loan modifications."

Looks like regulators and banksters are in cahoots. "Exhausted", my foot.

[cats530]

02:26 PM on 12/29/2010

"The regulators said one reason for the increase in foreclosures is that banks have "exhausted" options for keeping many delinquent borrowers in their homes through programs such as loan modifications."

Perhaps so. After all, you cannot modify what you do not own, although the banksters should be brazen enough to do it, as none of their other massive frauds have been properly investigated or prosecuted - thanks to our lackey politicians. Nor can you "modify" a loan that never made it into the trust. There was criminal intent, malice and fraud by the banksters from the origination through the foreclosure process, through the credit bid. The whole thing was rigged.

As only 2% or so of homeowners contest the foreclosure process, the banksters hope to eventually paper-over all the fraud with the complicit help of the government lackey organizations (Treasury, FBI, DOJ, FCIC, FDIC, OCC, ad nauseum) and the court system, while the average taxpayer (asleep at the wheel, engrossed in Dancing with the Stars and not caring about the debt his grandchildren will inherit) meekly picks up the trillion dollar tabs.

[Paul Sta]

03:36 PM on 12/29/2010

I would like to see their definition of a loan "modification" saving 150 per month, is not going to cut it.

[USNDC]

02:07 PM on 12/29/2010

Simple solution.

Modify the Chapter 13 bankruptcy law to allow Judges to modify mortgage loans on primary residences ... just like they can already do on vacation homes and investment properties.

Borrower's are forced to file BK ... Lenders are forced to take a much deserved financial haircut ... and foreclosures are averted ... thereby stabilizing property values.

If only President Barack Hussein Obama had made this decision two (2) years ago ... if only.

Thanks for nothing Barack.

[cats530]

02:34 PM on 12/29/2010

Even with the existing laws, in CH 13 "the bank" must prove standing and show accounting records. A good consumer advocate/BK/foreclosure defense attorney who understands securitization will be on that like a duck on a junebug.

[ddanimal]

06:22 PM on 12/29/2010

Why is it desirable to "stabilize property values" at an artifically high level? Houses are still too expensive relative to wages and there is still a glut of them.

Defaults, foreclosures and losses need to happen to correct the imbalances.

[USNDC]

08:56 PM on 12/29/2010

Really ?

Property tax revenues are based on property values ... as values dwindles ... state governments will experience tax revenue short falls ... and be forced to cut services ... eliminate jobs ... and RAISE TAXES to make up for those short falls.

People's most important asset is generally their home.

As long as there are a glut of foreclosures in the marketplace ... people's home values will continue to lose value ... and states will continue to experience tax revenue short falls ... and more foreclosure sales drive values down even further ... and the cycle will continue to repeat itself until we have all suffered.

And for what ?

[DuncanFa]

01:43 PM on 12/29/2010

The regulators said one reason for the increase in foreclosures is that banks have "exhausted" options for keeping many delinquent borrowers in their homes through programs such as loan modifications.

So, Our Regulator's have already thrown in the towel, because the poor bank's have " Exhausted"
all options, to help the homeowner


Does anyone in goverment oversight positions work FOR the taxpayer anymore?

[cats530]

02:28 PM on 12/29/2010

In answer to your question? No.

[mikey09]

01:18 PM on 12/29/2010

HP had an article not long ago that said there will be 7 million more homes foreclosed on in 2011, doesn't look like we have seen the bottom of the housing problems.

[ddanimal]

06:22 PM on 12/29/2010

Not by a long shot.